Financial Vocab
the amount of money that you earn
What is Income?
50%
What is Needs?
money owed by one party to another
What is debt?
possessions that have economic value
What are assets?
required payments to government
what is taxes?
the cost required for something; the money spent on something
What is expenses?
30%
What is wants?
a financial plan that states how much you earn or spend in a given period.
What is budget?
basic financial knowledge
What is financial literacy?
a goal that a person plans to achieve in less than a year
what is short term goal?
the money that has been set aside
What is savings?
20%
what is savings?
additional money individuals must pay when borrowing money
What is interest?
expenses that are the same every month
What is fixed expenses?
a goal that a person plans to achieve in more than a year
what is long term goal?
necessities like heat, gas, light
What is Needs?
the 10% of your earnings that you give to God first
allows you to pay for purchases out of your bank account.
what is Debit card?
shares of ownership in a corporation
what is stocks?
one who lends, may be an individual, business, or government.
What is a lender?
items such as, new phone, Starbucks, chipotle
the persons ability to borrow money and pay back over time
What is credit?
the allocation of money with the expectation of a profit or material benefit in return.
What is investment?
a legal status that a person can enter when they are unable to repay their debts.
what is bankruptcy?
a persons assets, or what a person owns that is of value
What is net worth?